Tax — Excise

Excise taxes are applied at federal, state, and local levels to a wide variety of items:

Excise Tax 101: Definition, Examples, State vs. Federal - IGEN excise tax

This guide outlines the fundamentals of excise tax, focusing on its application for businesses and consumers in the United States as of April 2026. Core Definition Excise taxes are applied at federal, state, and

: These taxes are typically paid by manufacturers or retailers to the government, who then pass the cost to consumers by including it in the product's price. Excise taxes are applied at federal

: Unlike general sales tax, excise tax applies only to specific categories like fuel, tobacco, or luxury goods.

: Alcohol (beer, wine, spirits) and tobacco products (cigarettes, vaping).

The amount owed is generally calculated using one of two methods: